Common use of Letter of Credit (LOC) Clause in Contracts

Letter of Credit (LOC). All Master Tenant’s Work or Subtenant’s Work shall be approved by Landlord (which consent shall not be unreasonably withheld, conditioned or delayed). Such consent shall be deemed given if not denied in writing to Master Tenant within ten (10) business days following Landlord’s receipt of such information required for Landlord to evaluate such applicable Master Tenant’s Work or Subtenants Work. Master Tenant shall furnish to Town, at no cost or expense to the Town, a letter of credit (“LOC”) in the amount not less than the sum of One Hundred Percent of the cost estimate of the Master Tenant’s Work, in a form subject to the review and approval by the Town Manager or his or her designee (which approval shall not be unreasonably withheld, conditioned or delayed), which LOC shall secure Master Tenant’s obligation to complete, and pay for the cost of completion of, the construction of the Master Tenant’s Work within the time reasonably fixed by the Landlord, or such extension thereof as may be allowed. Master Tenant shall refrain from performing, or causing the performance of, any work related to the construction of Master Tenant’s Work until Master Tenant furnishes a LOC satisfying this Section 6.5. In the event Master Tenant fails to complete the Master Tenant’s Work within the time fixed by Landlord or such extension period as determined by Landlord, and following Master Tenant’s receipt of written notice of such failure from Landlord, Master Tenant fails to promptly commence action to complete the Master Tenant’s Work within ten (10) calendar days of receipt of such notice, then Landlord may terminate this Lease for cause as specified in this Lease and Landlord shall be entitled to call on such LOC to the extent necessary to pay or reimburse Landlord for costs reasonably incurred by Landlord to complete the Master Tenant’s Work (and the balance of such LOC proceeds or the LOC itself after payment or reimbursement to Landlord as provided immediately above shall be paid or returned to Master Tenant). In the event that Master Tenant fails to complete the Master tenant’s Work within the time fixed by Landlord or such extension period as determined by Landlord, and following Master Tenant’s receipt of written notice of such failure from Landlord, Master Tenant commences action to complete Master Tenant’s Work within ten (10) calendar days of receipt of such notice but thereafter fails to diligently process such cure to completion, then, Landlord shall give a second, written notice to Master Tenant and if Master Tenant does not commence action to complete the Master tenant’s Work within fifteen (15) days following Master Tenant’s receipt of such second, written notice or thereafter diligently process such cure to completion, then Landlord may terminate this Lease for cause as specified in this Lease and Landlord shall be entitled to call on such LOC to the extent necessary to pay or reimburse Landlord for costs reasonably incurred by Landlord to complete Master Tenant’s work (and the balance of such LOC proceeds or the LOC itself after payment or reimbursement to Landlord as provided immediately above shall be paid or returned to Master Tenant).

Letter of Credit (LOC). All Master Tenant’s Work or Subtenant’s Work shall be approved by Landlord (which consent shall not be unreasonably withheld, conditioned or delayed). Such consent shall be deemed given if not denied in writing to Master Tenant within ten (10) business days following LandlordXxxxxxxx’s receipt of such information required for Landlord to evaluate such applicable Master Tenant’s Work or Subtenants Work. Master Tenant shall furnish to Town, at no cost or expense to the Town, a letter of credit (“LOC”) in the amount not less than the sum of One Hundred Percent of the cost estimate of the Master Tenant’s Work, in a form subject to the review and approval by the Town Manager or his or her designee (which approval shall not be unreasonably withheld, conditioned or delayed), which LOC shall secure Master TenantXxxxxx’s obligation to complete, and pay for the cost of completion of, the construction of the Master Tenant’s Work within the time reasonably fixed by the Landlord, or such extension thereof as may be allowed. Master Tenant Xxxxxx shall refrain from performing, or causing the performance of, any work related to the construction of Master TenantXxxxxx’s Work until Master Tenant furnishes a LOC satisfying this Section 6.5. In the event Master Tenant Xxxxxx fails to complete the Master TenantXxxxxx’s Work within the time fixed by Landlord or such extension period as determined by Landlord, and following Master TenantXxxxxx’s receipt of written notice of such failure from Landlord, Master Tenant fails to promptly commence action to complete the Master Tenant’s Work within ten (10) calendar days of receipt of such notice, then Landlord may terminate this Lease for cause as specified in this Lease and Landlord shall be entitled to call on such LOC to the extent necessary to pay or reimburse Landlord for costs reasonably incurred by Landlord to complete the Master Tenant’s Work (and the balance of such LOC proceeds or the LOC itself after payment or reimbursement to Landlord as provided immediately above shall be paid or returned to Master Tenant). In the event that Master Tenant Xxxxxx fails to complete the Master tenant’s Work within the time fixed by Landlord or such extension period as determined by Landlord, and following Master TenantXxxxxx’s receipt of written notice of such failure from Landlord, Master Tenant Xxxxxx commences action to complete Master TenantXxxxxx’s Work within ten (10) calendar days of receipt of such notice but thereafter fails to diligently process such cure to completion, then, Landlord shall give a second, written notice to Master Tenant Xxxxxx and if Master Tenant Xxxxxx does not commence action to complete the Master tenant’s Work within fifteen (15) days following Master TenantXxxxxx’s receipt of such second, written notice or thereafter diligently process such cure to completion, then Landlord may terminate this Lease for cause as specified in this Lease and Landlord shall be entitled to call on such LOC to the extent necessary to pay or reimburse Landlord for costs reasonably incurred by Landlord to complete Master TenantXxxxxx’s work (and the balance of such LOC proceeds or the LOC itself after payment or reimbursement to Landlord as provided immediately above shall be paid or returned to Master Tenant).